15th July, 2024 | By Sakshi Kamble | sakshi.kamble@biospectrumasia.com
Regulatory Approvals, New Product Launches, and Strong Financial Performance Highlight Medtronic's Strategic Advancements
Over the last six months in 2024, Medtronic has made significant strides in its strategic initiatives and product developments. The company received regulatory approvals and launched several new products, including the Evolut™ FX+ Transcatheter Aortic Valve Replacement (TAVR) system and the Inceptiv™ closed-loop spinal cord stimulator. Additionally, Medtronic submitted the Affera Sphere-9™ ablation catheter and Simplera Sync™ Continuous Glucose Monitoring (CGM) system for U.S. FDA approval.
Financially, Medtronic reported solid performance, with third-quarter (Q3 FY24) revenue reaching $8.089 billion, GAAP diluted EPS at $0.99, and non-GAAP diluted EPS at $1.30. For the full fiscal year 2024 (FY24), the company achieved a revenue of $32.4 billion, marking a 3.6% increase as reported and a 5.2% organic growth. GAAP diluted EPS for the year was $2.76, while non-GAAP diluted EPS was $5.20. The company also generated $6.8 billion in cash from operations and $5.2 billion in free cash flow.
Medtronic continued to reward shareholders, raising the quarterly dividend to $0.70 per share, marking the 47th consecutive year of dividend increases. Additionally, the board authorized an extra $5.0 billion for share repurchases, supplementing the existing $6.0 billion authorization from March 2019.
On the innovation front, Medtronic's MiniMed™ 780G System, an automated insulin delivery system with Meal Detection™ technology, was recognized by Fast Company as a World Changing Idea. The Affera™ Mapping and Ablation System showed positive results in the SPHERE Per-AF study, demonstrating safety and efficacy in treating persistent atrial fibrillation (AFib). The OmniaSecure™ Defibrillation Lead met primary safety and effectiveness endpoints in the LEADR Pivotal Trial, showing no lead fractures and stable performance through 12 months. Furthermore, the Percept™ RC Neurostimulator received FDA approval, featuring BrainSense™ technology for personalized treatment of movement disorders like Parkinson's disease. Innovations in AI for endoscopic care were also introduced, with GI Genius™ and ColonPRO™ enhancing detection accuracy and integrating with electronic health records for improved workflow.
Corporate developments included leadership changes, with CFO Karen Parkhill announcing her resignation effective August 2, 2024, to join HP Inc. as CFO, and Gary Corona stepping in as interim CFO. Medtronic also closed a public offering of €3.0 billion of senior notes, with the proceeds intended for general corporate purposes, including debt repayment.
Looking ahead, Medtronic expects organic revenue growth in the range of 4% to 5% for FY25 and has provided diluted non-GAAP EPS guidance of $5.40 to $5.50. The company continues to demonstrate its commitment to innovation in healthcare technology, financial growth, and returning capital to shareholders through its strategic initiatives and product advancements.
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